Samsung profit tops estimates bolstered by memory chip sales

Samsung Electronics Co. posted profit that topped analysts’ estimates on resilient sales of memory chips.

Operating income rose to 17.5 trillion won ($15.5 billion) in the three months ended September, according to preliminary results released Friday from the Suwon, South Korea-based company. That compares with the 17.2 trillion-won average of analysts’ estimates compiled by Bloomberg.

The record profit eases concerns about a downturn in demand for memory chips, even though there’s some doubt whether customers will continue their buying next year. That’s weighing on the world’s biggest chipmaker, which is also struggling to boost its smartphone sales. Samsung shares have declined about 12 percent this year, compared with a 41 percent gain last year, when its annual earnings rose to an all-time high.

“Hitting a peak in the third quarter, earnings momentum is expected to slow as profit falls until the early part of next year,” Yoo Jong-woo, an analyst at Korea Investment & Securities, wrote in a report before the earnings announcement.

Sales for the third quarter were 65 trillion won, matching the average projection compiled by Bloomberg. Samsung won’t provide net income or break out divisional performance until it releases final results later this month.